Citigroup (C)

·                  In Japan, revenues and net income increased primarily due to the absence of a $755 million pre-tax charge recorded in the prior-year period.  The current period results include a $188 million pre-tax charge to increase reserves for estimated losses due to customer settlements.  Results also reflect a decline in receivables balances and an increase in the net credit loss ratio.  Financial results reflected recent adverse changes in the operating environment and the impact of consumer lending laws passed in the fourth quarter 2006.

·                  Outside of Japan, revenues increased 15%, driven by average loan growth of 21%.  Net income declined as revenue growth was offset by an increase in net credit losses due to portfolio growth and an increase in the net credit loss ratio in India and Mexico.  Higher credit costs also reflected the impact of repositioning the U.K. business.  The net credit loss ratio increased 86 basis points to 3.78%.

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—           Income growth was primarily driven by continued credit improvements in Japan.  Outside of Japan, strong revenue growth was offset by increased investment spending and repositioning costs of $24 million after-tax.

—           Average loans increased 4%, reflecting a decline in Japan of 8% and growth outside of Japan of 20%.

—           The NCL ratio improved by 72 basis points to 5.59%.

—           During the quarter, 42 new branches were added outside of Japan and 11 new automated loan machines were opened in Japan.